The Financial Service Authority (FSA) has issued a further pension shortfall warning.
According to the FSA consumers who have contracted out of the additional state pension scheme are losing £4 per week because they were advised to opt out of the system.
The warning follows research from consumer group Which? that suggested that those who contracted out of the state pension are now worse off than those who stayed in.
Those who pulled out of the state second pension (S2P) or its forerunner, the state earnings related pension scheme (SERPS) since 1988 will find themselves around £208 a year short according to the FSA.
Even those who only contracted out of the state pension for five-years before returning are expected to be £2 out of pocket per week.
Up to eight million people have contracted out of S2P and around three million remain so.
Which? has already expressed its concern that the pension funds of an estimated 4.5 million people may be up to 20 per cent worse off because they chose to move their money.
FSA warns of new pension problem
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FSA warns of new pension problem
Tue, 23 Aug 2005
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